Image by Johannes Plenio.

One bright spot amidst all the terrible news last couple of months was the market’s reaction to DeepSeek, with BigTech firms like Nvidia and Microsoft and Google taking major hits in their capitalizations. Billionaires Nvidia’s Jensen Huang and Oracle’s Larry Ellison—who had, just a few days back, been part of Donald Trump’s first news conference—lost a combined 48 billion dollars in paper money. As a good friend of mine, who shall go unnamed because of their use of an expletive, said “I hate all AI, but it’s hard to not feel joy that these asshats are losing a lot of money.”

Another set of companies lost large fractions of their stock valuations: U.S. power, utility and natural gas companies. Electric utilities like Constellation, Vistra and Talen had gained stock value on the basis of the argument that there would be a major increase in demand for energy due to data centers and AI, allowing them to invest in new power plants and expensive nuclear projects (such as small modular reactor), and profit from this process. [The other source of revenue, at least in the case of Constellation, was government largesse.] The much lower energy demand from DeepSeek, at least as reported, renders these plans questionable at best.

Remembering Past Ranfare

But we have been here before. Consider, for example, the arguments made for building the V. C. Summer nuclear project in South Carolina. That project came out of the hype cycle during the first decade of this century, during one of the many so-called nuclear renaissances that have been regularly announced since the 1980s. [In 1985, for example, Oak Ridge National Laboratory Director Alvin Weinberg predicted such a renaissance and a second nuclear era—that is yet to materialize.] During the hype cycle in the first decade of this century, utility companies proposed constructing more than 30 reactors, of which only four proceeded to construction. Two of these reactors were in South Carolina.

As with most........

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